FLORIDA (Commodity Online): Silver prices are poised to rise to $30 over the next 12 months as large fluctuations in major currencies have pushed investors to purchase silver, silver futures and options and silver ETFs, according to a forecast by T&K Futures and Options Inc.

"Silver is considered by many investors to be a safe haven and an inflationary hedge in times of economic turmoil". It is also considered to be a type of insurance to protect against weakening currency valuations."

Unlike gold, silver is becoming scarcer because it is used in so many various products such as cell phones, flat screen televisions, batteries, bearings, soldering, catalysts, photography and solar energy production. Silver is used in such small amounts in the various electronic devices that it is not economical to try and recycle the silver used in the components. So once the component goes bad it is usually thrown away without the silver being recovered. World demand for silver has exceeded supply for most of the last two decades as jewelry and industrial demand for silver has remained robust. Silver is considered both a precious metal and an industrial metal by many.

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The current global economic problems have forced many nations to cut interest rate which often leads to weakened currency valuations. In the US record low interest rates and the printing of money should Lead from the deflationary environment that is currently affecting the United States and the rest of the world to a hyper inflationary cycle. These record low interest rates should weaken the US Dollar even more and commodity prices are dollar denominated. If the US Dollar continues to weaken, these US dollar denominated commodity markets may be pushed much higher. Energies, grains and the precious metals are especially susceptible to the inflationary pressures of a weakening US Dollar.

Some countries and especially China are buying physical Gold and Silver instead of US Treasuries in an attempt to hedge any potential risks of a devalued US currency. India recently bought 200 tons of gold from the International Monetary Fund for an estimated $6.7 billion. This lack of faith in the US Dollar by many nations may Lead to even more hoarding of precious metals such as gold and silver. This may also lead to a massive selling of US treasury bills, notes and bonds. The selling of treasuries is in effect a selling or deleveraging of the US Dollar. This may also help to push silver futures prices higher this year. Visit www.tkfutures.com/silver-futures-options.htm to learn more about the most recent supply and demand news pertaining to silver futures and silver options. Also visit www.tkfutures.com/gold.htm to learn more about gold futures and options investing.

Silver ETF investing may also help push silver futures prices higher as investors try to find a weak US Dollar and inflation hedge. These exchange traded funds are mostly long only meaning that an investor can only bet on higher silver prices and not short the silver markets or bet on lower silver prices. These funds are required to offset their various silver ETF purchases by investors with either the purchase of physical silver or the purchase of the appropriate number of long silver futures contracts. (Courtesy: PRWeb)

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